<p>US stocks slumped Monday with key indices markedly lower amid worries over the banking system following the collapse of Silicon Valley Bank and shuttering of Signature Bank.</p>.<p>Shares of First Republic Bank plunged more than 65 percent as trading started, leading the decline among banks as regional lenders face pressure.</p>.<p>Apart from First Republic, shares of other regional banks, including Western Alliance Bancorp and Zions Bancorporation, also plummeted.</p>.<p>Around 20 minutes into trading, the Dow Jones Industrial Average, which slipped 0.7 percent initially, picked up slightly.</p>.<p>But the broad-based S&P 500 remained 0.4 per cent down while the tech-heavy Nasdaq Composite Index lost 0.3 per cent.</p>.<p>This came despite US finance authorities announcing a rescue plan Sunday to ensure that depositors at the failed SVB will be able to fully retrieve their funds.</p>.<p>The Fed announced it would make extra funding available to banks to help them meet the needs of depositors, which would include withdrawals.</p>.<p>"Confidence is eroding in the market. We're seeing it particularly obviously in the regional banks," said Quincy Krosby of LPL Financial, adding the same phenomenon could be seen in Europe.</p>.<p>While US authorities are trying to shore up confidence, "it doesn't look as if it's working," she added.</p>
<p>US stocks slumped Monday with key indices markedly lower amid worries over the banking system following the collapse of Silicon Valley Bank and shuttering of Signature Bank.</p>.<p>Shares of First Republic Bank plunged more than 65 percent as trading started, leading the decline among banks as regional lenders face pressure.</p>.<p>Apart from First Republic, shares of other regional banks, including Western Alliance Bancorp and Zions Bancorporation, also plummeted.</p>.<p>Around 20 minutes into trading, the Dow Jones Industrial Average, which slipped 0.7 percent initially, picked up slightly.</p>.<p>But the broad-based S&P 500 remained 0.4 per cent down while the tech-heavy Nasdaq Composite Index lost 0.3 per cent.</p>.<p>This came despite US finance authorities announcing a rescue plan Sunday to ensure that depositors at the failed SVB will be able to fully retrieve their funds.</p>.<p>The Fed announced it would make extra funding available to banks to help them meet the needs of depositors, which would include withdrawals.</p>.<p>"Confidence is eroding in the market. We're seeing it particularly obviously in the regional banks," said Quincy Krosby of LPL Financial, adding the same phenomenon could be seen in Europe.</p>.<p>While US authorities are trying to shore up confidence, "it doesn't look as if it's working," she added.</p>